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The Fed has cut interest rates by 25 basis points! Powell has given the green light for continued easing, creating the best macro environment for Bitcoin and alts.
Fed will cut interest rates for the first time in 2025.
The Fed has made a decision as widely expected to lower interest rates by 25 basis points and leave room for further cuts.
The FOMC lowered interest rates by 25 basis points, leaving room for further rate cuts.
Although this decision was generally expected, it also carries a loose basis point tone.
Bitcoin and alts may react moderately.
The Fed made the long-anticipated decision on Wednesday, September 17, with the Federal Open Market Committee deciding to cut interest rates for the first time in 2025, lowering the rate as expected by 25 basis points from the range of 4.25%-4.50% to 4.00%-4.25%.
The Fed stated that it would keep the door open for further rate cuts. However, Chairman Jerome Powell did not specify the future path, including a commitment to further easing policies. Instead, the Fed chose to maintain flexibility.
Nevertheless, the Fed chair emphasized the growing concerns people have about employment and economic growth. This is a significant shift in tone that could signal a greater likelihood of rate cuts from the Fed in the future. Additionally, according to Bloomberg, a member of the Federal Open Market Committee disagreed and wished to cut rates by 50 basis points. Although this has not been officially confirmed, this dissenter is likely Stephen Moore, a Federal Open Market Committee member appointed by Trump.
What does the Fed's decision mean for Bitcoin and alts?
Interest rates have a significant impact on asset prices. Lower interest rates reduce the yields on fixed-income assets such as bonds and government securities. At the same time, interest rates also lower borrowing costs, making high-risk assets more attractive. This includes Bitcoin, especially alts.
The Fed's decision has been widely anticipated, so it is unlikely to have a significant impact on cryptocurrency prices. However, if inflation and interest rate policy are more moderate, it could push up Bitcoin prices and further boost alts.#BTC Reserve Market Impact